Sewer extension projects stay on budget

icamous’ sewer extension projects are expected to be completed within the district’s $10 million budget.

Sicamous’ sewer extension projects are expected to be completed within the district’s $10 million budget, which includes a contingency worth close to $1 million.

At the May 22 council meeting, the Local Government Management Association of B.C.’s Kathleen Day provided a breakdown of what money has gone where in the extensive sewer collection system expansion projects. These cover extensions through phase 1B (Chapman/Hemlock), phase 2 (Gillis/Elliot/Dogwood/Cottonwood), phase 4 (Larch to Highway 97A/Kappel to Pine), phase 5 (Parksville,/Sherlock Road area), phase 6, as well as to the Two Mile subdivision and the west side of the channel. The total budget for this amounts to $11,578,278. This includes $1,528,322 in developer contributions, $6,090,866 in provincial and federal grant funding and $4,029,582 in funds borrowed by the District of Sicamous. The $4 million includes a 10 per cent, $913,356 contingency fund.

The district was able to  borrow the funds in February 2010, after receiving public consent through an alternate approval process

Based on available information, Day explained the district appeared to be within the approved budget and should remain so to the end of the project. In her written report to council, Day estimates the municipality is expected to use all but $85,000 of the contingency.

“The west side of the channel still has to be completed and the Two Mile extension will be completed in the next month or so. So, based on that budget, everything appears to be going along according to plan,” said Day.

As of Dec. 31, $9.4 million has been spent on the project and Day said that for 2013, “the town has budgeted just over $2 million for sewer capital works for those (latter) two additional phases, for a total of $11.5 million.”

As of May 16, the district had borrowed $3 million. Day explained another  $1 million would still have to be borrowed, adding the district already has approval to borrow the entire $4 million.

One particular challenge spoken to in Day’s report relates to developer contributions. Their $1.5 million is represented in cash payments and letters of credit. But not being not being able to locate signed agreements between the district and the two developers involved specifying what expenditures each developer was responsible for appeared to make for additional work and some uncertainty.

Day writes, “the lack of agreements also raises concerns regarding what actions are available to the district… if the costs are more or less than the dollar value that has been provided by each developer.”

Mayor Darrell Trouton reiterated the extensions to the west side of the channel as well as Two Mile are under budget.

 

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